After the scorching Japanese inflation data that was issued earlier this Friday. Bank of Japan (BoJ) Governor Kazuo Ueda has given his opinions.
Following are some key` quotes:
“Japan inflation likely to slow back below 2% in the middle of the current fiscal year.”
“Thereafter, there is a very high likelihood of a rebound due to uncertainty regarding the outlook.”
“External, cost-push factors; not strengthening demand; current inflation rise”
“The economy would suffer if monetary policy were tightened in response to this.”
“For inflation to hit 2%, inflation expectations must rise.”
“The BoJ will keep easing while controlling the yield curve.”
“We will without hesitation add to easing if necessary.”
“The cost of prematurely changing policy and snuffing out positive developments towards price target is extremely high.”
The price of It is less expensive to ensure that inflation stays stable at 2% than to change policy too soon.
It is “appropriate to take time in determining when to modify easy monetary policy.”
BoJ’s experience with QQE demonstrated what is necessary to change the public’s attitude that prices and salaries won’t increase much.
“In my opinion, the economy hasn’t been significantly stimulated by the BoJ’s QE, which was adopted in 2001.”
BoJ statement reaction on Market
Despite the BoJ Chief’s remarks, USDJPY is on ominous tone close to 138.00. As of this writing, the pair is down 0.44% on the day at 138.06.
